Who qualifies as a relevant owner under paragraph 23 of Schedule 17 LBTT(S)A 2013?

A relevant owner is a person who satisfies two conditions: immediately after the land transfer they must be entitled to a proportion of the chargeable interest, and immediately before the transfer they must have been either a partner in the partnership or connected with a partner. Both conditions must be met simultaneously.

How does paragraph 23 treat joint owners for the purposes of the LBTT calculation?

Joint owners are treated as if they were common owners holding equal shares. This deemed equal-share treatment applies for both identifying relevant owners under paragraph 23 and calculating the sum of the lower proportions under paragraph 22, ensuring identifiable proportions exist even where the legal ownership form does not specify individual shares.

What does 'connected with a partner' mean in the context of paragraph 23?

Connected with a partner carries its usual statutory tax meaning, covering close family members such as spouses, associated companies, and other relationships defined in legislation. A person connected with a partner who also holds a proportion of the chargeable interest after the transfer qualifies as a relevant owner for the paragraph 22 calculation.

How are deemed shares calculated when three people are joint owners after a partnership transfer?

If three people hold the property as joint owners after the transfer, each is treated as holding a one-third share for the purposes of identifying relevant owners and computing the sum of the lower proportions under paragraph 22. This deemed equal-share approach converts joint ownership into quantifiable common ownership proportions.

Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 17 paragraph 23

Relevant owners for calculating the sum of the lower proportions

Paragraph 23 defines who counts as a "relevant owner" when calculating the sum of the lower proportions under paragraph 22, and clarifies how joint ownership is treated for these purposes.

A relevant owner is someone who holds a proportion of the chargeable interest immediately after the land transfer and who was a partner (or connected with a partner) immediately before the transfer.
Both conditions must be met: the person must end up with a share of the property and must have had a connection to the partnership beforehand.
Where persons hold a chargeable interest as joint owners, they are treated as if they were common owners holding equal shares.
This deemed equal-share treatment applies both to the definition of relevant owner in paragraph 23 and to the calculation of the sum of the lower proportions in paragraph 22.

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